County eyeing local income tax increase & homeowners’ tax credit

By ADAM PINSKER
WISH-TV | wishtv.com

A Hamilton County Council member says his plan to raise the county income tax and use the revenue as a credit for homeowners will benefit people struggling with high property tax bills.

Brad Beaver, a Republican, said, “My real concern here is older people, retired people, fixed income. They own their house. They want to live here, and our property taxes are driving them out of their house.”

The 0.25 percent income tax increase would be phased in from 2024 to 2027.

Beaver

“My plan is that the county would raise their income tax to exactly match the reduction in the state income tax over a total four years,” Beaver said. “When we get to the end of four years, it is about $52 (million), $53 million it would generate.”

Beaver says the money raised would go toward homeowners in the form of a property tax credit in addition to the Homestead Exemption tax credit, which many people living in their own homes are eligible to request.

The credit would affect every homeowner differently, especially if their property tax is capped. However, renters would not be eligible for the tax credit.

“It is not a direct effect on them, because they are not paying property tax, and commercial buildings and rental properties don’t get this (Homestead Exemption) benefit.”

The Hamilton County Council has already passed this measure, but for it to take effect, at least two councils of the county’s four cities – Carmel, Fishers, Noblesville and Westfield – must sign off on the measure before Oct. 1.

If approved, the tax changes would start in January.